The Comparison On Parts And Components Trade Between China And East Asian Countries

Parts and components trade attracts more and more attention in world today. Traditional production process split into a number of sectors (value chain segmentation), each country then makes full use of their comparative advantages during this process. The parts and components trade in East Asia grow even faster than other regions in the world and China occupies a pivotal position in the East Asian’s parts trade. Therefore, the study of making a comparison on parts and components trade between china and other East Asian countries is quite meaningful.In this paper, by siting UN-COMTRADE and the trade data of parts and components there, we get the conclusion that, "flying geese model" has lost its role in East Asia. The transfer of trade structure and trade advantage did not follow Japan-Four Little Dragons-ASEAN-China this sequence any longer. The gap between Japan and other East Asian countries is narrowing, China is not the "goose tail" any more and its revealed comparative advantage is mainly focus on human capital-intensive and technology-intensive industry. However, due to the current level of economic development in East Asian, the "flying geese model" still has some certain effect on the economic development of East Asia. The relationship between East Asia countries is becoming even closer, more complementarity then competition. This new relationship will not only enhance the professional trade of parts and components trade in this region, but also enriched the entire level of the East Asian production networks. In the end, this paper put forward some suggestions for Chinese government to increase its competitiveness and achieve a win-win situation in the whole Asian sphere.